The Anatomy of a Quarter Million Dollar Fix & Flip

[Gabe D.]

Greetings Investors,

Im excited to introduce the new "The Anatomy of a Flip" post series!

In these posts we will be dissecting recently completed renovation projects, highlighting best practices and sharing lessons learned.

The goal is to help aspiring investors gain a better understanding of the real estate investment business so that they too can ultimately achieve financial freedom.

Here's hoping these posts add value to your lives and individual real estate investment businesses.

Property Description

The subject property was a large dated Cape in the desirable commuter town of Berkeley Heights. The original dwelling was not the highest and best use of the prime location. It was an ideal candidate for an Add A Level and ultimately yielded a beautiful 5 Bed 4 Bath 4,200 Sq Ft Custom Colonial deserving of the location. The house boasted a full finished basement, designer finishes throughout, massive custom closets and a chefs kitchen.

Renderings 

Numbers

• Location: Berkeley Heights, New Jersey
• Ownership Structure: Project Specific LLC
• Work Description: Add A Level / Addition
• Financing: Hard Money / Private Money Lender
• Duration: 12 Months
• Purchase Price: $455,000
• Cost of Construction: $400,000
• Sales Price: $1,250,000
• Holding Costs: $100,000
• Selling Costs: $65,000

Pictures

Click here to see all the listing photos on Zillow

Click here to see all the listing photos on Zillow

Videos

Interior Progression Video

Kitchen Progression Video

Video Walkthrough

Virtual Tour 

I hope you enjoyed walking through this project with us and found value in the information shared herein.

We'll continue to work on and improve these posts so that we may share our experiences on future projects.

Please feel free to respond to this post with any  questions or feedback you might have. 

[Gabe D.]

Originally posted by @Joseph M.:

@Gabe D.  Thanks for sharing Gabe. The home looks really nice! I'm not familiar with the area but looks like there are a lot of very nice homes in that part of NJ. 

It looks like the profit after all expenses was $230,000 is that correct? 

I noticed on Zillow it was first listed in November 2016 but just sold this June. This seems like a long time , but I don't know the market there at all. Is it typical for similar homes to take this long to sell in the area? 

Also are you able to do several of these homes at one time or do you usually work on one project at a time? 

We typically list all our stuff pre-construction using architecturals, floorplans and renderings.  We have been pre selling about 50% of our projects this way. This one unfortunately wound up not selling pre construction so we finally had to list it. We were listed for 90 days which in our market is pretty good for this price point. 

With our model and system right now we can run about a half dozen of these at any given time. We are set to scale though and Im confident with the right team we can take on a lot more. It was a challenge initially creating the system but now that its in place we should be able to really blow it out.